A solution to assist clients to meet the cost of breaking their existing fixed interest rate and provide increased monthly cashflow.

While the recent reduction of interest rates by main Banks has brought relief to many homeowners, a large proportion of homeowners that previously fixed their mortgages at higher interest rates remain locked in. The hefty cost of breaking current fixed interest rates is one of the main barriers to breaking fixed interest rates, however Home Mortgages now has a solution to assist those unable to afford these high break costs and re-fix at lower rates.

Home Mortgages is able to provide funds to assist clients with their fixed interest rate break costs. A long term reduction in interest rates results in increased weekly cahsflow (even after break costs have been covered).  This increase in cashflow can be applied to the reduction of credit card or other debts.

Below is a scenario of how the Home Mortgages 'Break Out' product can assist your client to acheive increased weekly cashflow by gaining funding from Home Mortgages to break existing high fixed rates and re-fixing at the current lower interest rates.

Clients purchase home in 2007
Existing interest rate 8.9% fixed for 3 years.
LVR 84.4% (at time of purchase)
Good 1^st mortgage repayment history.
Current P & I payments $37,955 pa.
Break costs (say) = $17,100

• NZMBA Application or similar
• Proof of Income
• ID
• Home Mortgages Calculator
• Credit Check
• 1^st Mortgage Statements (3months)
• Confirmation of break cost
• Bank Statements (3 months)